AIM:JSG

Stock Analysis Report

Executive Summary

Johnson Service Group PLC, together with its subsidiaries, provides textile rental and related services in the United Kingdom.

Snowflake

Second-rate dividend payer with questionable track record.


Similar Companies

Share Price & News

How has Johnson Service Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: JSG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.1%

JSG

-1.9%

GB Commercial Services

-0.5%

GB Market


1 Year Return

35.6%

JSG

15.0%

GB Commercial Services

3.7%

GB Market

Return vs Industry: JSG exceeded the UK Commercial Services industry which returned 15% over the past year.

Return vs Market: JSG exceeded the UK Market which returned 3.7% over the past year.


Shareholder returns

JSGIndustryMarket
7 Day-2.1%-1.9%-0.5%
30 Day0.2%-0.3%1.4%
90 Day-2.6%3.1%3.1%
1 Year38.6%35.6%18.6%15.0%9.2%3.7%
3 Year75.7%64.8%23.3%12.6%23.5%7.8%
5 Year234.3%199.4%30.1%8.9%34.4%3.8%

Price Volatility Vs. Market

How volatile is Johnson Service Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Johnson Service Group undervalued compared to its fair value and its price relative to the market?

20.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JSG (£1.71) is trading below our estimate of fair value (£2.14)

Significantly Below Fair Value: JSG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: JSG is poor value based on its PE Ratio (22.6x) compared to the Commercial Services industry average (18.1x).

PE vs Market: JSG is poor value based on its PE Ratio (22.6x) compared to the UK market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: JSG is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: JSG is overvalued based on its PB Ratio (3.3x) compared to the GB Commercial Services industry average (1.7x).


Next Steps

Future Growth

How is Johnson Service Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JSG's forecast earnings growth (8.2% per year) is above the savings rate (1.2%).

Earnings vs Market: JSG's earnings (8.2% per year) are forecast to grow slower than the UK market (12.7% per year).

High Growth Earnings: JSG's earnings are forecast to grow, but not significantly.

Revenue vs Market: JSG's revenue (4.4% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: JSG's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JSG's Return on Equity is forecast to be low in 3 years time (18.1%).


Next Steps

Past Performance

How has Johnson Service Group performed over the past 5 years?

23.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JSG has high quality earnings.

Growing Profit Margin: JSG's current net profit margins (8.3%) are lower than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: JSG's earnings have grown significantly by 23.9% per year over the past 5 years.

Accelerating Growth: JSG's earnings growth over the past year (6.5%) is below its 5-year average (23.9% per year).

Earnings vs Industry: JSG earnings growth over the past year (6.5%) underperformed the Commercial Services industry 14.9%.


Return on Equity

High ROE: JSG's Return on Equity (14.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Johnson Service Group's financial position?


Financial Position Analysis

Short Term Liabilities: JSG's short term assets (£69.2M) do not cover its short term liabilities (£93.0M)

Long Term Liabilities: JSG's short term assets (69.2M) do not cover its long term liabilities (143.9M)


Debt to Equity History and Analysis

Debt Level: JSG's debt to equity ratio (51.1%) is considered high

Reducing Debt: JSG's debt to equity ratio has increased from 35.8% to 51.1% over the past 5 years.

Debt Coverage: JSG's debt is well covered by operating cash flow (96.8%).

Interest Coverage: JSG's interest payments on its debt are well covered by EBIT (9.7x coverage).


Balance Sheet

Inventory Level: JSG has a high level of physical assets or inventory.

Debt Coverage by Assets: JSG's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Johnson Service Group's current dividend yield, its reliability and sustainability?

1.81%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.9%markettop25%5.3%industryaverage2.9%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: JSG's dividend (1.81%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.94%).

High Dividend: JSG's dividend (1.81%) is low compared to the top 25% of dividend payers in the UK market (5.33%).


Stability and Growth of Payments

Stable Dividend: JSG's dividend payments have been volatile in the past 10 years.

Growing Dividend: JSG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.8%), JSG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JSG's dividends in 3 years are forecast to be well covered by earnings (34% payout ratio).


Next Steps

Management

What is the CEO of Johnson Service Group's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average management tenure


CEO

Peter Egan (47yo)

0.8yrs

Tenure

UK£354,945

Compensation

Mr. Peter John Egan, MBA, Chief Executive Officer of Johnson Service Group PLC since January 1, 2019, Director since April 1, 2018 and served as Chief Operating Officer since April 1, 2018 January 1, 2019. ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD456.61K) is below average for companies of similar size in the UK market ($USD1.14M).

Compensation vs Earnings: Insufficient data to compare Peter's compensation with company performance.


Management Age and Tenure

5.8yrs

Average Tenure

47yo

Average Age

Experienced Management: JSG's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

2.7yrs

Average Tenure

61yo

Average Age

Experienced Board: JSG's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£11,42019 Dec 18
Christopher Sander
EntityIndividual
Shares10,000
Max PriceUK£1.14
BuyUK£9,98918 Dec 18
Christopher Girling
EntityIndividual
Role
Lead Director
Senior Independent Non-Executive Director
Shares8,638
Max PriceUK£1.16

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Yvonne Monaghan (61yo)

    CFO & Director

    • Tenure: 12.3yrs
    • Compensation: UK£553.00k
  • Tim Morris (42yo)

    Group Financial Controller & Company Secretary

    • Tenure: 5.8yrs
  • Peter Egan (47yo)

    CEO & Director

    • Tenure: 0.8yrs
    • Compensation: UK£354.95k

Board Members

  • Bill Shannon (70yo)

    Non-Executive Chairman

    • Tenure: 1.3yrs
    • Compensation: UK£83.00k
  • Yvonne Monaghan (61yo)

    CFO & Director

    • Tenure: 12.3yrs
    • Compensation: UK£553.00k
  • Chris Girling (65yo)

    Senior Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: UK£19.00k
  • Nick Gregg (56yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: UK£44.00k
  • Peter Egan (47yo)

    CEO & Director

    • Tenure: 0.8yrs
    • Compensation: UK£354.95k

Company Information

Johnson Service Group PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Johnson Service Group PLC
  • Ticker: JSG
  • Exchange: AIM
  • Founded: 1780
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: UK£631.537m
  • Shares outstanding: 368.46m
  • Website: https://www.jsg.com

Number of Employees


Location

  • Johnson Service Group PLC
  • Johnson House
  • Abbots Park
  • Preston Brook
  • Cheshire
  • WA7 3GH
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JSGAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJun 1994

Biography

Johnson Service Group PLC, together with its subsidiaries, provides textile rental and related services in the United Kingdom. The company supplies workwear garments and protective wear under the Apparelma ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 20:38
End of Day Share Price2019/11/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.